The Debt Cycle Is a Cause of Why Our Currency Losses Value
The value of the U.S. dollar has dropped 97% since 1900, when it was at its peak. The decline is due to a debt cycle caused by governments' promise to pay money in the future for money now. John Sutter: I think one of the sections I liked was the analysis of revolutions. But did you guys have any thoughts on what actually results in real change versus what doesn'tWhat were the ones you recognize?
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Ray Dalio, founder of Bridgewater Associates, has written several books on the world of investing and the economy in general based on his years of experience as manager of the world’s largest hedge fund. In the latest of his ‘Principles’ series, Dalio applies his quantitative approach of macro investing to analyzing countries, seeking to identify the factors that lead to strength such as education and work ethic, as well as lagging indicators such as a reserve currency that allow a country to spend beyond its means but ultimately presage a fall from dominance. Notably, Dalio sees China’s rise to the top of global power as likely, with America, while ahead, slowly declining. Tonight we debate the merits of his analysis, as well as the overall validity of a global macroeconomic approach that overlooks key factors such as demographics in forecasting long term power status.
